Richard Levick, Esq., is Chairman and CEO of LEVICK, which provides strategic communications counsel on the highest-profile public affairs and business matters globally. Mr. Levick has been named four times as one of “The 100 Most Influential People in the Boardroom.” He is the co-author of four books and a regular commentator on television and LEVICKDaily.com.
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It’s a truism of crisis management that, when seeking a way to recoup or buttress public confidence, companies are well-advised to isolate a problem as nimbly as possible. The message: The safety threat is not inherent in our oversight system but, rather, it’s a singular glitch that can be directly remedied. All the better, of course, if that singular glitch is attributable to a third party.

While the situation has been depicted as a “full-fledged crisis,” Boeing has a long track record of surmounting such exigencies. A different kind of challenge now confronts the battery manufacturer, GS Yuasa, the world’s leading manufacturer of motorcycle batteries but by no means a household name in most countries. It’s another truism of crisis management that companies are well-advised to amass great stores of reputational equity that they can draw on in the event of threats to their reputations. Boeing has plenty of that equity; GS Yuasa does not.

Yet, GS Yuasa can still serve its current interests by following Boeing’s lead, to avoid the temptation to publicly point fingers, and demonstrate openness and responsiveness to investigators. While not pointing fingers, it can’t be hurting Boeing’s cause that the problem was in its supply chain, and that the flaw apparently involves a single component rather than the mechanical integrity of the craft itself. Indeed, some conspicuous broadcast media have perkily depicted the situation as “good news for Boeing” because it’s just “a bad battery batch.” Again, an isolated problem is better than a systemic one under most circumstances.

However, that “battery batch” is also critical to the Dreamliner brand as the 787 has been highly touted for low fuel consumption. The lithium-ion batteries made by GS Yuasa are specifically designed for fuel efficiency. For Boeing, it offers a competitive hedge against erstwhile rival Airbus. However, as they conserve fuel, the batteries, which use five times more electricity than batteries in other planes, may overcharge and become more flammable. The chemicals produce oxygen that makes it harder to put out the fires once they start.

A few subtexts further complicate the current narrative for both companies. As amply reported, cost overruns and delivery delays have plagued the Dreamliner. Moreover, the fact that this grounding is the first of its kind ordered by the FAA since 1979 highlights the seriousness of the present situation, and thus constitutes further threat to the Dreamliner brand. That brand cannot now be bulletproofed even if Boeing were inclined to offer up GS Yuasa as an easy sacrifice to stakeholder demands for someone to glibly blame, especially as Boeing has itself been accused, however unfairly, of cutting corners to avoid future delays. To be sure, Boeing and GS Yuasa are in this thing together.

If there are dark passages in the narrative, both companies have a few tools in their crisis management arsenals as well. In addition to demonstrable compliance with all regulatory initiatives, there are specific reassurances to offer the public. For example, it’s been established by the National Transportation Safety Board that the battery did not exceed stipulated voltages. More broadly, the manufacturers can encourage public support by calling on innovation as their higher mission. After all, the efficiencies of lithium-ion batteries will ultimately benefit everyone, so perseverance as well as compliance is in order.

There’s also a lot riding for GS Yuasa in the most immediate practical sense because the company provides cells to NASA and the International Space Station. Tuesday’s tabloids already warned of “Fears for astronauts” despite the fact that those lithium-ion batteries are not the same as the ones used for the Dreamliner. A spokesperson told the press that NASA won’t reconsider its contract with GS Yuasa until the FAA inquiry is completed, which naturally suggests that the company has quite a bit riding on that inquiry.

In what may be the worst-case scenario, an unfavorable result at the FAA could cause other airlines and manufacturers to reconsider using lithium-ion batteries, although Airbus does seem to have made a commitment to this technology. Its A350, built to compete with the 787, also uses lithium-ion batteries and is scheduled for test flights this year.

At the same time, a fruitful resolution of the FAA investigation would bode very well for both Boeing and GS Yuasa. More than exoneration, it could predictably resonate as a vote of confidence, clearing the way for an airplane that the public seems to very much want, and for a technology that all of us very much need.

Richard Levick, Esq., President and CEO of LEVICK, represents countries and companies in the highest-stakes global communications matters — from the Wall Street crisis and the Gulf oil spill to Guantanamo Bay and the Catholic Church. Mr. Levick was honored for the past four years on NACD Directorship’s list of “The 100 Most Influential People in the Boardroom,” and has been named to multiple professional Halls of Fame for lifetime achievement. He is the co-author of three books, including The Communicators: Leadership in the Age of Crisis,and is a regular commentator on television, in print, and on the most widely read business blogs.

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